Q1. PRODUCT COST Item DM DL MOH PERIOD COST 1.Adm Salaries 15500 2. Adv. Helmets 11000 3. Depreciation Fac. 1500 4. Deprecition Office 800 5. Insurance fact 1500 6. Miscelleneous fact 1000 7. Office supplies expen. 300 8. Property taxes 400 9. Raw Materials used 70000 10. Rent production equip. 6000 11. Wages-factory 70000 12. R&D 10000 13. Sales Comm 40000 14. Uitility cost 900 Total 70000 70000 11300 78100 Q2 Item VC FC Total Cost .Adm Salaries
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points. The team learned it is essential to understand the relationship between inputs and the law of diminishing marginal productivity. Another key point discussed in week two focused on the relationship between production and productivity inside a firm. It is also significant to note the price of inputs has a large effect on the supply curve. In addition, it is important to recognize marginal revenue and costs directly tie to output volumes. Through research, teammates determined each focus point provides
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EGT1 Task 1 – Marginal Analysis The profit calculation of total revenue and total costs is Profit (P) equals total revenue (TR) minus total costs (TC) and focuses on maximizing this difference. Profit will be maximized when the total revenue, or the amount they would receive by selling that particular widget exceeds the total cost, or the costs associated with making this widget by the greatest amount. The greatest difference between these two is considered the profit.The profit calculation of
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opportunity cost for an alternate employment, since money does not change hands. The accountant would ignore this cost as no cash flow has occurred to cause an effect in the balance sheet. 2. Draw a production function that exhibits diminishing marginal product of labour. Draw the associated total-cost curve. (In both cases, be sure to label the axes.) Explain the shapes of the two curves you have drawn. We know that the average product of labour is the total product of labour divided by the number
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Rich Manufacturing Gordon Perkes Why do many firms use cost-plus pricing for supply contracts? Cost-plus pricing is a pricing method used by companies to maximize their rate of returns. It is also known as markup pricing. Many firms use cost-plus pricing because it is one of the more common methods of pricing. “Firms that use this technique calculate average total cost and then mark up the price to yield a target rate of return”. I would say the biggest reason for cost-plus pricing is that
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| Jen Poe | | | | | | | BUS657 Corporate Managerial Finance | | | | | | | | | | | | | Week #5 | | | | | | | Assignment - Chapter 22 Mini - Case | | | | | | | | | | | | | | | | | | | 1) Calculate BB's current cash conversion cycle. | | | | | | | | | | | | | BB's Ratios: | | | | | | | Average Age of Inventory | $842,020 / [(0.57 *$43,803,000) /365] | | 12.31 | days | | Average Collection Period | $3,240,222/($43
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Spring Semester 2010 University of Pacific ECONOMICS 53 Problem Set 6 Due before lecture on April 1 Part 1: Multiple Choice (15 Questions, 1 Point Each) 1. If a monopolist's marginal revenue is $35 a unit and its marginal cost is $25, then A) to maximize profit the firm should decrease output. B) to maximize profit the firm should continue to produce the output it is producing. C) to maximize profit the firm should increase output.
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and marginal revenue and marginal cost. Marginal revenues is defined as the change in total revenue when more unit of a product is sold. Marginal cost is the cost that arises by producing one more unit of a product. It is not the same as the total cost that results out of fixed and variable costs and neither to total revenue that is the total money a firm receives by selling its products. However profit is when you subtract total cost from total revenue. Thus if marginal cost and marginal revenue
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References: Tirole, Chapter 1; MWG, Chapter 12; Bulow, “Durable-Goods Monopolists,” JPE 90(2) 314-332. 233 Nolan Miller Notes on Microeconomic Theory: Chapter 9 P ver: Aug. 2006 P0 A B D Q0 Q Figure 9.1: The Monopolist’s Marginal Revenue In order for the solution to be unique, we need the objective function to be strictly concave (i.e. d2 π dq2 < 0). The second derivative of profit with respect to q is given by d2 (p (q) q − c (q)) = p00 (q) q + 2p0 (q) − c00 (q) . dq
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Snap Fitness would need to achieve 800 memberships to generate a monthly net income of $10,000. Snap Fitness Variable Cost Types Variable costs are costs that vary in total directly and proportionately with changes in the activity level. If the level increases 10%, total variable costs will increase 10%. If the level of activity decreases by 25%, variable costs will decrease 25%. Variable costs include direct materials and direct labor, costs of goods sold, and sales commission. A variable cost
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